Qatar’s tourism industry has undergone a significant transformation since 2022. In the fourth quarter of that year an estimated 1m foreign visitors arrived for the 2022 FIFA World Cup, which was watched by over 1bn people worldwide and boosted the country’s reputation as a travel destination. In addition, since 2019 Qatar’s supply of hotel rooms has increased by nearly half, and a flurry of museums and cultural sites have either opened or begun construction.
The growth of the tourism industry mirrors the pivotal role that it plays within the Qatar National Vision 2030 (QNV) economic framework, which aims to broaden and enhance the economy through diversification and development efforts. In 2023 the momentum initiated by the FIFA World Cup continued, as arrivals in the first three quarters of that year more than doubled compared to the same period during the previous year. The tourism industry, which accounts for roughly one-tenth of the country’s GDP, employs hundreds of thousands of people and is an increasingly central part of the economy.
Structure & Oversight
Qatar Tourism main government body responsible for developing the sector’s strategy and policy. It promotes investment in tourism, markets the country as a destination, undertakes actions to enhance the visitor experience and performs regulatory functions. Qatar Tourism has overseas offices in 15 key foreign markets, including China, Germany, Iran, Russia, the UK and the US. In October 2023 Saad Ali Al Kharji was named chairman of the organisation, replacing the former Qatar Airways CEO Akbar Al Baker.
Qatar Airways, which is owned by the government, is the country’s national carrier. In November 2023 Al Baker stepped down as the airline’s CEO, with Badr Mohammed Al Meer, formerly Hamad International Airport’s chief operating officer, assuming the role. Al Baker had been CEO since 1997, with the company growing from five aircraft into a significant international airline with a fleet of 258. Qatar has three commercial airports overseen by the Civil Aviation Authority. Hamad International Airport is the country’s main international airport and serves as the centre for Qatar Airways.
In April 2023 Qatar Tourism relaunched Hayya, a platform and smartphone app that together act as a single portal for tourist and business visas. The platform first gained prominence in 2022 when it processed the entry of over 1m visitors during the FIFA World Cup. However, not all foreign nationals require a Hayya visa, as Qatar allows visa-free entry for citizens of 102 countries.
The Ministry of Culture – led by Sheikh Abdulrahman bin Hamad bin Jassim bin Hamad Al Thani – promotes local culture, organises cultural events and seeks to raise the status of Qatari culture globally. It also oversees major sporting events and promotes sport among the local population. Meanwhile, Qatar Museums (QM) is responsible for managing museums and galleries, public art displays, heritage sites and certain parks, playgrounds and libraries.
Strategy
The country’s tourism strategy is guided by QNV and the Third National Development Strategy 2024-30. The headline goals for the tourism sector under the strategy are to attract 6m visitors annually and raise the sector’s contribution to GDP to 12% by 2030. According to the strategy, Qatar aims to achieve QR34bn ($9.3bn) in total in-destination spend and 19m total room nights by 2030, the latter of which would be a significant increase compared to the figure of nearly 8.2m reported for 2023. In addition, as foreign investment is seen as playing a crucial role in the development of the sector, the Investment Promotion Agency is actively promoting foreign funding in tourism-related projects.
Technology is an increasingly large part of the sector as well. A number of start-ups in the private sector are using artificial intelligence and digital services to customise and enhance visitors’ experiences. Meanwhile, in the public sector Qatar Tourism has enhanced its Visit Qatar website to centralise tourism marketing activities and provide solutions for tourists. Following its launch in April 2021, the Visit Qatar mobile app was downloaded over 100,000 times in its first year, and Qatar Tourism’s promotional campaign, Experience a World Beyond, received over 2bn impressions.
Overall, the national strategy targeting the tourism sector represents a multifaceted plan to boost the country’s ongoing economic diversification. “Qatar’s national tourism strategy outlines ambitious plans to make the sector a pivotal driver of economic diversification,” Sheikh Faisal Bin Qassim Al Thani, chairman of Al Faisal Holding, told OBG. “Policies in support of this strategy include visa reforms, investment incentives and substantial infrastructure development. Qatar is also leveraging its culture and heritage to attract more tourists through museums, cultural festivals and heritage sites.”
Key Metrics
Qatar’s tourism industry has experienced a surge in activity and growth in recent years. In 2022 inbound visitors spent an estimated $16.8bn, accounting for 10% of Qatar’s GDP, according to Invest Qatar. This marked a 67.2% increase in value terms over the previous year as the country emerged from the Covid-19 pandemic, and a 9.9% increase in comparison to pre-pandemic levels in 2019. The World Travel & Tourism Council (WTTC) estimated the sector’s GDP contribution in 2023 to be approximately QR83.9bn ($23bn), or 9.9% of GDP — a 6.2% increase compared to 2022 in value terms. This improvement is especially notable given that Qatar hosted 1m people during the FIFA World Cup. By 2033 the WTTC projects Qatar’s tourism industry to contribute 11.5% of GDP, expanding at a compound annual growth rate (CAGR) of 4.2%, while the country’s overall economy is expected to increase at a more modest CAGR of 2.7%.
In 2019 tourism provided 264,600 jobs, or 12.6% of the economy’s total employment, according to the WTTC. By 2022 this figure had risen to 285,600, or 13.5% of total jobs. The WTTC estimates the final numbers for 2023 to be 302,800 and 14.4%, respectively, with these figures projected to reach 454,200 and 20.9% by 2033. This means that the sector will provide an additional 151,400 jobs for Qataris over the next decade, in line with QNV goals to diversify away from resource extraction and generate employment in non-hydrocarbons sectors.
In terms of in-country expenditure, the WTTC estimated that international visitors spent QR57.2bn ($15.7bn) in 2019, with this figure expanding to QR59.8bn ($16.4bn) in 2022 and projected to reach QR106bn ($29.1bn) by 2033. Meanwhile, domestic tourists spent QR8.9bn ($2.4bn) in 2019, a figure estimated to have grown to QR9.5bn ($2.6bn) in 2022 and forecast to increase to QR15.6bn ($4.3bn) in 2033. Following the lifting of pandemic-related restrictions on global travel, in 2022 international visitors represented over 86% of the total spent on tourism in the country. In 2022 some 69.9% of international tourist spending was in the leisure category, while 30.1% was spent by business travellers.
Visitor Numbers & Source Markets
In 2023 visitors poured into Qatar at a record pace, with arrivals surpassing the full-year total for 2022 by July. In 2023 Qatar reported more than 4m international arrivals, a 58.4% increase from the previous year, according to Qatar Tourism. According to the government body, 2023 broke the record for annual visitors to the country, while January 2024 set a record for international arrivals in a single month, as more than 700,000 people visited during that month, more than double the figure reported for the corresponding period in 2023.
As of the end of the first quarter of 2024 Saudi Arabia had provided 28% of all foreign visitors for the year to date, followed by India (7%), Germany (5%), Bahrain (5%) and Oman (4%), according to Qatar Tourism. Kuwait and the UAE were also among the country’s top-10 source markets. Saudi Arabia’s position as the top market is notable, considering it was not even in Qatar’s top-five source markets as recently as 2019. Its position at the peak of the ranking as of the first quarter of 2024 reflects a successful resolution to the rift between Qatar and a number of other countries in the region that began in June 2017, with diplomatic relations between Qatar and Saudi Arabia resuming in January 2021. Meanwhile, tourism numbers from India were boosted following a decision to reinstate visas on arrival for travellers in December 2022.
The overall number of arrivals was supported by an aggressive expansion of routes and flight frequency by Qatar Airways. At the ITB Berlin tourism and travel trade show in March 2023, Al Baker announced that the airline would add seven destinations, restart travel to 11 others and increase the frequency of flights to 35 markets. The airline saw a 21% y-o-y increase in flights by July 2023. Five of the new destinations are in Europe and the other two are in Africa. January 2023 also marked the first charter flights to Qatar, which could provide additional flexibility for travellers from countries not served by major airlines. Arrivals by sea tend to spike in winter, but most visitors come by plane, with 60% of visitors arriving that way in March 2024.
Hospitality
The hospitality industry has seen a significant rise in hotel supply, as the country built over 150 new hotels in preparation for the FIFA World Cup. Between the third quarter of 2022 and the same period in 2023, room supply increased by 24% from 31,200 to 38,814. Since 2019 the supply grew by a notable 45%. Of the nearly 39,000 rooms, some 18,075 are in five-star hotels, 7411 are in fourstar hotels and 3145 are in three-, two- or one-star hotels. The remaining rooms comprise deluxe and standard apartments, and other accommodations. The industry is expected to reach 56,000 keys by 2025, according to research conducted by UK-based real estate consultancy Knight Frank.
In 2023 Qatar’s hotels had an occupancy rate of 58%, with the total number of room nights surpassing 8.1m, according to Qatar Tourism. The occupancy rate for the year was up 1% on 2022, with the average daily rate for a room coming in at QR408 ($112). As of the end of the first quarter of 2024 Qatar had surpassed 2.6m room nights for the year to date, with the occupancy rate at 75% and the average daily rate reaching QR484 ($133).
Occupancy rates tend to dip slightly in summer during the hotter period of the year, with cooler temperatures in October, November and December making those months some of the industry’s busiest. Budget options tended to fare better than their luxury counterparts in 2023, with two- and one-star occupancy rates remaining steady at 90%, while such rates for deluxe and standard apartments were 60% and 69% for the year, respectively.
Given the rise in demand for hotel rooms during the FIFA World Cup held in November-December 2022, the average daily room rate in 2022 increased substantially, rising from QR383 ($105) in 2021 to QR739 ($203) in 2022. By the end of 2022 the average daily room rate in the five-star segment had increased even further, rising from QR517 ($142) to QR1055 ($290). However, by the end of 2023 this rate had fallen significantly, with the average daily room rate for five-star hotels coming in at QR586 ($161). In total average daily rates for 2023 were down 45% from 2022 following the spike in rates during the tournament, with deluxe apartments and three-star hotels witnessing the most notable declines in average daily rate.
FIFA World Cup
Hosting the FIFA World Cup presented a significant opportunity for the country’s tourism industry, with 1.5bn viewers watching as Argentina beat France in the final held in Lusail Stadium. A combined 3.4m people, including an estimated 1.4m foreign visitors, filled Qatar’s stadiums to watch the 64 matches.
The scale of the economic transformation in Qatar in general, and the tourism industry in particular, cannot be understated. Between 2010, when Qatar won the bid to host the sporting event, and 2022, when the tournament took place, the country spent approximately $220bn on key infrastructure and tourism projects. Of this, roughly $10bn was spent on building eight new stadiums for the event. Other investment projects included the construction of the Doha Metro system and the addition of roughly 30,000 hotel rooms. In 2019 and 2020 there were 24 and 29 new foreign direct investment (FDI) projects recorded in Qatar. In 2021 and 2022 these figures jumped to 106 and 143, respectively.
Qatar’s Supreme Committee for Delivery and Legacy has promised that further work will be undertaken to ensure the venues built for the tournament remain in use. Stadium 974 was the first-ever temporary stadium built for a FIFA World Cup, designed to be dismantled and its parts reused. Other stadiums will be downsized, and there are plans to transform some into residential and shopping areas.
Other Sporting Events
Perhaps the most important and lasting legacy of the FIFA World Cup is the attention it generated and the investment the tournament brought in, positioning Qatar as a leading player in international sport. Such events and infrastructure are a central component of the government’s economic diversification strategy, as evidenced by the fact that between 2009 and 2024 Qatar hosted more than 500 sporting events. Beyond the FIFA World Cup, the country has been the site of the 2015 Men’s Handball World Championship, the 2015 AIBA World Boxing Championship, the 48th Artistic Gymnastics World Championships and the International Handball Federation Super Globe, as well as the 2019 ANOC World Beach Games and the FIFA Club World Cup in 2019 and 2020.
Furthermore, Qatar hosted the FINA World Aquatics Championships in February 2024 and the AFC Asian Cup in January-February 2024. Some events are also held annually in the country, such as the ExxonMobil Qatar Open in tennis, the Commercial Bank Qatar Masters in golf and the Moto GP Superbike Championship. In addition, Qatar is set to host the FIA World Endurance Championship between 2024 and 2029. The country is also reportedly interested in a bid for Doha to be the location of the 2036 Summer Olympics, and the country has petitioned the International Olympic Committee to participate in the initial dialogue phase of the event’s organisation.
The presence of e-sports, a relatively new addition to the sports economy, is also burgeoning. Qatar has some of the highest internet and mobile phone penetration rates in the world, providing a solid foundation for the e-sports ecosystem. Virtuocity, a new digital theme park equipped with the latest gaming consoles and offering immersive gaming experiences, hosts 165,000 gamers annually.
In addition to events, Qatar provides abundant infrastructure for locals to participate in sport. The country boasts 67 sports institutions and 264 public sports facilities, the latter of which includes 68 football pitches and 33 tennis courts. In 2023 Qatari teams took home a number of major trophies across international and regional tournaments. At the Arab Games in Algeria in July 2023, Qatari athletes won 22 medals, more than any GCC country other than Bahrain. In February 2024 Qatar won the AFC Asian Cup in football, making it the first country in 20 years to win the tournament two times in a row after winning the 2019 edition in the UAE. At the Asian Games in Hangzhou, China, in September-October 2023, Qatar won 14 medals, more than any Middle Eastern country other than Iran and Bahrain.
Culture
Following the success of the FIFA World Cup, tourism authorities are seeking to draw more attention to the country’s heritage and contemporary cultural offerings. A flourishing art scene and diverse events draw visitors from around the world. Between 2022 and 2024 QM rolled out a major museum-building programme. The Qatar Auto Museum is scheduled to open in 2026, and Dadu, Children’s Museum of Qatar is slated to open in 2026. Swiss architects Herzog & de Meuron are designing the Lusail Museum, which broke ground in 2023 for a 2029 opening. The museum is expected to house the world’s largest collection of Orientalist paintings once open. The Art Mill Museum, which is set to repurpose a flour mill located by Doha Bay, has a target opening of 2030. Meanwhile, the Museum of Islamic Art, one of the country’s most well-known museums, reopened in October 2022 after an 18-month-long renovation.
Qatar is also investing in preserving a plethora of cultural sites. In 2023 the country began transforming Al Mayfar, an abandoned settlement on the country’s northern tip, into a modern tourist destination. The site will feature eco-friendly cultural and heritage activities. QM is working closely with archaeologists to make sure the ruins underneath are not harmed in the process. There are also substantial preservation and conservation efforts in progress to preserve artefacts found by teams of archaeologists around the country, many of which are transferred to the Museum of Islamic Art. Qatar also boasts a UNESCO World Heritage site in the Al Zubarah archaeological site.
Throughout the year, Qatar Tourism organises festivals and cultural events in cooperation with local partners. Some of these events include the Qatar Shopping Festival, Qatar International Food Festival, Qatar Live, Qatar Summer Festival and Qatar Balloon Festival. Qatar Tourism publishes a semi-annual guide called Qatar Now, which directs visitors to the country’s many cultural attractions and events. Qatar also partners with other countries in cultural exchange initiatives. In 2023 Doha was named the Arab Tourism Capital by the Arab Ministerial Council, a designation that facilitated a beneficial cultural exchange with other countries in North Africa and the Middle East. The year 2023 was also the Qatar-Indonesia Year of Culture, with an entire section of the Qatar International Food Festival devoted to exploring Indonesian cuisine. The National Museum of Qatar also hosted an exhibit about coffee in Indonesia and demonstrated how the two countries’ shared affinity for the beverage has strengthened bilateral relations.
In 2022 Qatar and UNESCO celebrated the 50th anniversary of Qatar becoming a member state. The UN agency has had its office for the Arab States of the Gulf in Qatar since 1976. Since 2007 Qatar has hosted a UNESCO biosphere reserve at Al Reem, offering research opportunities for sustainable development and the use of arid lands. The Qatar Development Fund is a major contributor to UNESCO’s Heritage Emergency Fund, supporting the protection of cultural heritage sites in emergencies.
Niche Sectors
Many tourists who visit Qatar from countries outside of the Islamic world arrive via cruise ship. For example, in the third quarter of 2023, 69% of visitors from the US arrived by sea, compared to much lower numbers from the GCC arriving by the same mode of transport. Qatar welcomed 253,191 cruise visitors during its 2022-23 season, an increase of 151% compared to 2021-22. Notably, approximately 37,144 were turnaround passengers – those either beginning or ending their cruise in Doha – marking an increase of 790%. Qatar only began to allow turnaround passengers in 2019.
Qatar also has a thriving meetings, incentives, conferences and exhibitions (MICE) segment. Approximately 80% of the world’s population lives within a six-hour flight of the country, which affords it a major advantage in terms of accessibility. Furthermore, the FIFA World Cup demonstrated Qatar’s ability to host large-scale events, as the country has the infrastructure and space required to welcome thousands of foreign visitors for an event.
Doha is home to both the Qatar National Convention Centre, and the Doha Exhibition and Convention Centre (DECC). The DECC is managed by the Qatar Business Events Corporation, which is an arm of Qatar Tourism. “The combination of a stable and welcoming environment, vibrant cultural offerings and active government support for the MICE industry creates an attractive package for event organisers,” Michael Michael, CEO of the DECC, told OBG. “This in turn brings in high-spending visitors who bolster the economy and also showcases Qatar’s potential globally, which opens avenues for further investment and tourism in the country.”
Outlook
While the allocation of hundreds of billions of dollars for the transformation of Qatar ahead of the FIFA World Cup was an achievement, what merits greater attention is the industry’s ability to maintain its momentum into 2023. Estimates suggested a substantial increase in arrivals by the end of 2023 compared to 2022, indicating a buoyant trajectory. Furthermore, the sector’s ongoing development towards achieving the official objective of contributing 12% to national GDP by 2030 signifies steady and significant progress, in alignment with Qatar’s strategic economic goals.
The country has leveraged its modern infrastructure to emerge as a global frontrunner in sports commerce. Diversifying beyond traditional arenas, Qatar has ventured into hosting events such as Formula One races, golf tournaments and various other competitions. The country is also intensifying efforts to broaden its tourism portfolio, actively positioning itself as a destination for cultural tourism in the region. Highlighting its heritage, Qatar is home to a UNESCO World Heritage site, alongside a globally acclaimed Museum of Islamic Art. Additionally, Qatar is set to unveil several new museums by the end of the decade, further enhancing its appeal as a cultural centre for tourists.
Since erecting its first skyscraper in the 1990s and hosting the Qatar ExxonMobil Open tennis tournament in 1993, the country has undergone a remarkable transformation and continues to expand its tourism offerings. Despite the progress witnessed in the sector, it does face several obstacles. Qatar must persist with its diversification efforts to appeal to a broader spectrum of potential visitors. The high summer temperatures, which are further exacerbated by climate change, pose a significant challenge as well. Furthermore, for tourists in search of a vibrant nightlife, the country’s regulations on alcohol present a constraint.
Despite these challenges, tourism is poised to sustain its recent growth in the future. Government authorities are strategically targeting those segments in which the country can gain a competitive edge, while capitalising on its inherent strengths.
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